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Books > Social sciences > Politics & government > Public administration
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Oil Booms and Business Busts - Why Resource Wealth Hurts Entrepreneurs in the Developing World (Hardcover)
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Oil Booms and Business Busts - Why Resource Wealth Hurts Entrepreneurs in the Developing World (Hardcover)
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Oil Booms and Business Busts looks at how government policymaking
shapes a puzzling phenomenon in economic development-the "curse" of
natural resources. It investigates how oil and mineral wealth
shapes a government's policies toward the business environment,
entrepreneurs, and innovative activities. Other similar work either
ignores the role of government policymaking in oil wealth, treats
it as another effect of the rentier state, or dismisses it as
illogical and incoherent. One might expect that in light of such
abundances governments would encourage entrepreneurship and new
businesses to compete and grow in the market, but Nimah Mazaheri
shows that resource wealth instead incentivizes policymakers to
focus on satisfying the interests of existing elites. They, more
than oil-poor nations, institute barriers that impede the
activities of domestic firms and entrepreneurs, with the result
being unimpressive economic performance over the past half-century.
This is the first book to examine how oil wealth affects non-elite
actors who own the small and medium-sized firms that absorb a
majority of the economic and labor force of these countries.
Looking at two of the most important oil-producing countries in the
world, Iran and Saudi Arabia, the book provides an original theory
about the factors that shape a logic of policymaking in oil
producing states. To extend his theory Mazaheri also looks at
India, which is one of the world's main coal producers. He does
this to show the effects of the gain and loss of a massive resource
windfall on state policymaking toward the private sector.
Ultimately Mazaheri argues that such policymaking impedes the
development of a middle class and therefore democratization-a
factor that can have overarching political repercussions for
governmental stability.
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